NOTE 3: LOANS AND ALLOWANCE FOR LOAN LOSSES
Loans by Type
(dollars in thousands)
As of December 31
Real estate mortgage
Production and intermediate term
Agribusiness
Other
Total
2017
2016
2015
Amount % Amount % Amount %
$2,126,626 55.7% $2,070,649 56.6% $1,929,426 55.9%
755,647
750,158
187,077 19.8%
19.6%
4.9% 760,392
643,556
184,435 20.8%
17.6%
5.0% 776,082
574,831
172,102 22.5%
16.6%
5.0%
$3,819,508 100.0% $3,659,032 100.0% $3,452,441 100.0%
The other category is primarily comprised of communication, energy, and other diversified industries in our capital markets portfolio.
Portfolio Concentrations
Concentrations exist when there are amounts loaned to multiple borrowers engaged in similar activities, which could cause them to be similarly impacted by
economic conditions. We lend primarily within agricultural industries.
As of December 31, 2017, volume plus commitments to our ten largest borrowers totaled an amount equal to 5.5% of total loans and commitments.
Total loans plus any unfunded commitments represent a proportionate maximum potential credit risk. However, substantial portions of our lending activities
are collateralized. Accordingly, the credit risk associated with lending activities is less than the recorded loan principal. The amount of collateral obtained, if
deemed necessary upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but typically includes
farmland and income-producing property, such as crops and livestock. Long-term real estate loans are secured by the first liens on the underlying real
property.
Participations
We may purchase or sell participation interests with other parties in order to diversify risk, manage loan volume, or comply with the FCA Regulations or
General Financing Agreement (GFA) limitations.
Participations Purchased and Sold
(in thousands)
As of December 31, 2017
Real estate mortgage
Production and intermediate term
Agribusiness
Other
Total
As of December 31, 2016
Real estate mortgage
Production and intermediate term
Agribusiness
Other
Total
As of December 31, 2015
Real estate mortgage
Production and intermediate term
Agribusiness
Other
Total
AgriBank
Participations
Sold
Other Farm
Credit Institutions
Participations
Purchased
Sold
Non-Farm
Credit Institutions
Participations
Purchased
Total
Participations
Purchased
Sold
($107,915)
--
(229)
-- $82,612
88,426
659,992
170,445 ($19,906)
(7,487)
(96,621)
-- $21,243
--
--
-- $103,855
88,426
659,992
170,445 ($127,821)
(7,487)
(96,850)
--
($108,144) $1,001,475 ($124,014) $21,243 $1,022,718 ($232,158)
AgriBank
Participations
Sold
Other Farm
Credit Institutions
Participations
Purchased
Sold
Non-Farm
Credit Institutions
Participations
Purchased
Total
Participations
Purchased
Sold
($130,962)
--
(285)
-- $113,329
70,858
586,816
169,331 ($14,497)
(9,334)
(60,426)
-- $17,257
--
317
-- $130,586
70,858
587,133
169,331 ($145,459)
(9,334)
(60,711)
--
($131,247) $940,334 ($84,257) $17,574 $957,908 ($215,504)
AgriBank
Participations
Sold
Other Farm
Credit Institutions
Participations
Purchased
Sold
Non-Farm
Credit Institutions
Participations
Purchased
Total
Participations
Purchased
Sold
($167,217)
(3,302)
--
-- $116,526
26,729
550,607
157,282 ($11,810)
(47,087)
(11,843)
-- $ --
571
1,898
-- $116,526
27,300
552,505
157,282 ($179,027)
(50,389)
(11,843)
--
($170,519) $851,144 ($70,740) $2,469 $853,613 ($241,259)
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